Following the decision to buy 1Malaysia Development Berhad’s(1MDB) largest stake in a power plant project, Tenaga Nasional Berhad (TNB) now intends to raise about RM10 billion in an Islamic bond issue.

If the plan goes through, the bond would be the biggest sukuk globally this year, advancing the sukuk market after the issuance dropped in the first quarter to a record low in four years, Reuters reported.

However, sources said the plans for the issue are still in preliminary stages.

According to the report, TNB’s biggest shareholder, Khazanah Nasional Berhad is considering at a single issue bond instead of a series of bonds.

Khazanah has sent a few proposals to different banks, sources told Reuters.

Earlier this month, TNB decided to purchase 1MDB’s 70 percent stake in a Greenfield 2,000 MW coal-powerd plant, 3B.

The transaction between TNB and 1MDB is believed to alleviate 1MDB by scaling down its debt of over than $11billion (RM4, 1163, 650,000).

However, TNB’s CEO Datuk Seri Azman Mohd has denied the claims that the purchase of 3B is not a bailout for the troubled investment company.